YELPNEUTRAL

Return on Equity (ROE)

20.4%

Higher than 60% of Communication Services sector peers

Updated 561h ago

Sector Performance

60th percentile

YELP

20.4%

Sector Median

14.7%

Sector Avg

18.3%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company turns shareholder equity into profit; Yelp's 20.4% means it generates $0.204 of profit for every dollar of equity.

This is well above the sector median of 11.3%, placing Yelp in the 72nd percentile of Communication Services peers. However, trend data is largely unavailable: year-over-year change is N/A, while the quarter-over-quarter change shows a slight decline of -0.5%. A high ROE combined with a marginal quarterly decrease suggests the company remains efficient but may be experiencing minor pressure, presenting a balanced risk profile—neither a clear opportunity nor a red flag. This mixed picture supports the overall NEUTRAL verdict, as the strong level is offset by the slight negative movement and missing longer-term trend.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about YELP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does YELP's Return on Equity (ROE) compare to its sector?

YELP's Return on Equity (ROE) of 20.4% compares to a Communication Services sector median of 14.7%, placing it in the 60th percentile.

Who are YELP's closest peers by Return on Equity (ROE)?

The closest Communication Services peers by Return on Equity (ROE) include: DIS (11.0%), T (18.4%), DASH (9.9%), PINS (8.9%), RDDT (26.2%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.